Related Capstone Lessons

Unit 2: Lesson 13 - How Markets Allocate Resources

Students read I, Pencil, by Leonard Read, to gain an understanding of Adam Smith's concept of the invisible hand of the marketplace. Students see that a system of market prices brings about cooperation without coercion. Then students use supply and demand analysis to explain how a change in one market tends to affect related markets.

Concepts:

  • Markets
  • Supply
  • Complements
  • Invisible Hand
  • Secondary Effects
  • Substitute
Standards:
  • Standard #7: Markets and Prices
  • Standard #8: Role of Prices

Unit 2: Lesson 14 - Secondary Effects: Price Ceilings and Floors

Students investigate the consequences of price controls in markets for silver, rock concerts, automobiles, razor clams, and school textbooks. (It would be best to use this lesson after students have participated in the silver market game [Unit 2, Lesson 7]

Concepts:

  • Price
  • Shortage
  • Surplus
  • Secondary Effects
Standards:
  • Standard #7: Markets and Prices
  • Standard #8: Role of Prices

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